USDCAD and USDCNH: USDCAD is trying to hold above 1.35700
- On Friday, USDCAD jumped to a new yearly high at 1.36476.
- USDCNH fell into some consolidation for the fourth day.
USDCAD chart analysis
On Friday, USDCAD jumped to a new yearly high at 1.36476. This was followed by a pullback and a drop below 1.36000 for the rest of the day. Yesterday, the dollar tried to initiate a new bullish consolidation but was stopped at the 0.36175 level. From there, we turn again to the bearish side and slide to the 1.35700 level this morning. Here, we encounter the EMA200, which stops the pullback and keeps us above.
With a break below, we go to a new weekly low and thereby confirm the bearish momentum. Potential lower targets are 1.35500 and 1.35400 levels. We need a positive consolidation and a move above the 1.35850 level for a bullish option. We will thus skip the previous consolidation and can expect further growth and a transition to a more specific bullish trend. Potential higher targets are 1.36000 and 1.36200 levels.
USDCNH chart analysis
USDCNH fell into some consolidation for the fourth day. We are under more pressure this week as the move is taking place below the EMA200 moving average. This morning brought us down to a new weekly low at 7.24024 level. We managed to get support at that level and recover to the 7.24450 level. Here, we come across the EMA50 and need to skip that resistance to start a further recovery.
Potential higher targets are 7.24800 and 7.25000 levels. In the zone around 7.24800, we will again wrestle with the EMA200. If we turn again to the bearish side, we will be looking at the 7.24000 level of support. A new test in that zone would only increase the pressure on USDCNH to slip below and form a new low. Potential lower targets are 7.23800 and 7.23600 levels.
